HousingScam – Supreme Court Presses CBI To Speed Up Probe Into Bank-Builder Nexus
HousingScam – The Supreme Court has expressed concern over delays in the investigation into an alleged nexus between certain banks and real estate developers that reportedly left thousands of homebuyers in financial distress across the Delhi-NCR region and other parts of the country. The court observed that prolonging the inquiry could deepen the hardship already faced by affected flat buyers who have been waiting years for clarity and justice.
Supreme Court Questions Slow Progress Of Investigation
During a recent hearing, a bench led by Chief Justice Surya Kant along with Justices Joymalya Bagchi and Vipul M Pancholi examined the status of the probe being conducted by the Central Bureau of Investigation. The court said that investigations cannot continue indefinitely and emphasized that unnecessary delays would only add to the difficulties faced by buyers who claim they were misled by developers and financial institutions.
The bench also expressed dissatisfaction with the agency’s suggestion that some of the cases could be transferred to state investigative authorities. The judges made it clear that the cases should remain with the CBI and directed the agency to convert preliminary enquiries into full-fledged criminal investigations wherever necessary.
Case Linked To Subvention Housing Schemes
The matter reached the Supreme Court through a group of petitions filed by more than 1,200 homebuyers. One of the primary petitions was submitted by Himanshu Singh through advocate Akshay Srivastava.
Many of the petitioners had purchased apartments under subvention schemes in housing projects located mainly in Noida, Greater Noida and Gurugram. Under such arrangements, banks release the sanctioned loan amount directly to the developer once a buyer books a property.
As part of the agreement, builders are expected to pay the monthly loan instalments to the bank until the homebuyer receives possession of the apartment. However, several developers allegedly stopped paying these instalments, creating complications for the buyers who had entered into tripartite agreements with both the banks and the builders.
Homebuyers Claim They Were Forced To Pay EMIs
According to the petitions filed in the court, once developers defaulted on their payments, banks began demanding the instalments from the homebuyers themselves. Buyers argue that this demand was unfair because many of the housing projects remain incomplete and possession has not been granted even years after booking.
The Supreme Court had earlier ordered a CBI investigation into the alleged collusion between developers and financial institutions that may have allowed such schemes to operate in a manner that harmed homebuyers.
Court Signals Possibility Of Oversight Committee
While reviewing the progress of the probe, the bench indicated that if the investigation continues at the present pace, the court might consider establishing a monitoring committee to oversee the work being done by the investigative agency. The observation came as the judges stressed the need for greater urgency in examining the allegations.
The court also suggested that if the CBI faces manpower constraints while handling the cases, it could request assistance from state police forces. In particular, the agency was advised to seek support from the Economic Offences Wings operating under various state police departments.
Concern Raised Over Lack Of Scrutiny Of Bank Officials
Another point raised by the bench was the apparent lack of investigation into the role of bank officials connected with the disputed projects. The court noted that the probe should not focus solely on developers and must examine whether financial institutions or their officers had any involvement in the alleged irregularities.
To ensure accountability, the judges directed a responsible officer from the CBI to submit an affidavit during the next hearing detailing the progress made in the investigation across all related cases. The agency was also asked to outline a likely timeframe for completing the probe.
Amicus Curiae To Review Submissions From Stakeholders
The Supreme Court further instructed that all stakeholders involved in the matter — including homebuyers, banks and real estate developers — may submit their claims, suggestions and recommendations to the amicus curiae appointed in the case, senior advocate Rajiv Jain.
The amicus will review the material submitted and present relevant information before the court. The bench clarified that the court would consider such submissions only after they have been examined through this process.